What Are the Benefits of a Personal Umbrella Insurance Policy?

Throughout life, there may be times when you’re involved in accidents or other incidents involving other parties. Friends, family, neighbors, guests, coworkers and even complete strangers could all experience injuries, property damage and other financial losses for which they may blame you. In these situations, you may require significant monetary resources beyond a standard insurance policy. Personal umbrella coverage could be essential.

What Is Personal Umbrella Insurance?

As its name may imply, personal umbrella policies can establish a broad layer of financial protection for you and your fiscal interests. This overarching form of coverage can help you retain access to additional funds and resources should the capabilities of other types of insurance be exhausted by particularly costly liability incidents or lawsuits.

How Can a Policy Help?

There are many facets of everyday life that can expose you to potentially significant liabilities and losses. Consider the following real-life examples and how a personal umbrella insurance policy might make all the difference:

• If you start a fire in your kitchen, your home insurance may cover your losses. But what about if the flames spread to a neighbor’s house? In these situations, you’d likely be responsible for their losses, and the costs could quickly exhaust the personal liability coverage component of your home insurance, necessitating additional aid from an umbrella policy.
• While hosting a birthday party at your home, you accidentally serve spoiled food to guests, and the resulting medical costs exceed your personal liability coverage. Fortunately, you may still be able to limit out-of-pocket losses by tapping the additional resources available through your personal umbrella insurance.
• You’re the at-fault party in a car accident. Other motorists suffer significant bodily injuries, and someone’s car is totaled. These losses may quickly exhaust the capabilities of your auto liability limits and could potentially have devastating consequences unless you have further coverage available.

Learn More

Contact Price Insurance in Lake Forest, IL, today to learn more about personal umbrella coverage or to get a free quote.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.